Category: Tax Resolution Technical Training

Tax debtors have numerous options available to them for resolving their unpaid tax liabilities. While the vast majority of tax debtors will be placed into an appropriate Installment Agreement or into Currently Not Collectible (CNC) status, the Offer in Compromise program provides an amazing opportunity for taxpayers to start fresh with the IRS…if they qualify. In this post, we explore the ins and outs of the Offer in Compromise program from a taxpayer representative’s point of view.

What is an Offer in Compromise?

The IRS Offer in Compromise is a program through which the IRS allows taxpayers to settle their tax liabilities for less than what they owe. The authority to accept less than what is owed is granted by 26 U.S. Code § 7122. Under this statute, taxpayers may submit lump-sum Offers in Compromise to settle their tax debts through a lump-sum payment or periodic payment Offers in Compromise to settle their liabilities through a finite number of periodic payments. If a taxpayer submits an Offer in Compromise to the IRS for a lump-sum, he or she will be required to submit an initial payment with the offer. People who submit periodic payment Offers in Compromise must submit the amount of the initial periodic payment with their offers.

Under IRM 5.8.1, the IRS will accept an Offer in Compromise when it deems the tax liability to be otherwise uncollectible. It may also agree to an Offer in Compromise when there is doubt about the liability owed and to support the effective administration of taxes. The goal of the OIC program is to negotiate a legal payment agreement that is in the taxpayer’s and IRS’s best interest.

Doubt about collectibility

The first ground for approving an offer of compromise exists when the IRS doubts its ability to collect the tax debt because of the taxpayer’s financial inability to pay the full amount owed. Doubt about the collectibility of tax debt may be shown when a taxpayer’s income and assets are insufficient to satisfy the full tax liability. this is the most common ground for making an Offer in Compromise. Some taxpayers who submit Offers in Compromise for tax debts that are deemed to not be collectible can settle their liabilities for a fraction of the total owed. Under IRC § 7122(d)(3)(A), the IRS must not deny an Offer in Compromise when their denial is solely based on the amount that … Continue reading

Until recently, it has been difficult for tax professionals to enter into the tax resolution world. Many have been put off by the idea of having to learn a completely new area of practice and procedure, let alone having to delve into the gory morass of the Internal Revenue Manual. However, new training options have put tax resolution certification within reach of more  tax professionals. This means that there are more ways to expand your practice.

What Is a Tax Resolution Specialist?

A tax resolution specialist is someone who helps people resolve any open debt that they may owe to the IRS. Along with tax resolution specialists, those who receive this type of training are also referred to as:

• Taxpayer representatives
• Tax relief specialists
• Tax controversy professionals
• Tax problem recovery experts

More tax professionals are starting to offer tax resolution services. If you decide to expand into tax assistance, it will give you a way to increase your income, as these cases tend to pay well. They also give you greater flexibility in how you run your business. This makes it a service that you can offer your clients year-round, giving you a way to earn a steady income instead of focusing on making most of your income when tax season rolls around.

Tax Resolution Services

Tax resolution training includes teaching you how to deal with tax issues such as:

• Examination representation
• Offers in Compromise
• Liens and levies
• Installment Agreements
• Innocent and injured spouse relief
• Penalty abatements
• Trust Fund Recovery Penalties

…and, of course, the proverbial “much, much more!”

Examination Representation

If you decide to offer examination representation services, then you’ll be standing in for a client during a tax audit performed by state officials or the IRS.

Offers in Compromise

During your taxpayer representation program, you’ll learn how to submit an offer in compromise to the IRS when it is appropriate to do so. This is the area of the tax law that allows your clients to settle their tax debt for a lower amount than what is owed. During your training course, you’ll learn when this is the best option for your clients, who qualifies, and how to get the best possible “deal” for your client.

Liens and Levies

When one of your clients owes unpaid taxes, the IRS may issue a levy. This will allow the agency to seize your client’s … Continue reading

What is IRS Collections? How much tax resolution work is there to do? What does the tax resolution process look like?

What is the “secret” federal tax lien? How do I resolve tax debt cases? What is CNC? What are the different types of IRS Installment Agreements?

If you’ve had zero prior exposure to IRS Collections representation, then these are likely the types of questions you may be asking yourself. This video, recorded as a live CPE webinar on June 22, 2017, provides a very high level overview of tax debt resolution processes.

Free CE/CPE class: To attend the latest version of this class, in continuing education format, go here.

Watch on YouTube: https://www.youtube.com/watch?v=qm4Bwsc0MpE

Note: Video replays of webinars are not eligible for CE/CPE/CLE credit. Information was accurate as of the date of recording, but since tax laws, regulations, policies, and procedures are constantly changing, please refer to the most recent available guidance for updated information.

Unedited Transcript

Note: This is a raw, unedited transcript of the recording that was produced with an automated transcription tool, not a human transcriptionist. It’s provided merely for reference and to help you find specific sections of the video you might want to jump to.

[00:00:04.140]
Good afternoon, everybody. This is Jassen Bowman, and welcome to this presentation of an overview of IRS collections or representation.

[00:00:19.930]
Before we get started, I want to let you know, certificates of completion, I’ll get those done over the weekend as well as the IRS reporting. To in to receive your CPE credit, you must answer all three polling questions.

[00:00:37.600]
This is usually an issue for the IA’s because you’re not necessarily used to doing this on some of the IRS webinars and whatnot. But now Zarba has stricter requirements than the IRS does for sea completion. So you’ve got to answer the following questions. The handouts of the the slides for today’s presentation are available in the reminder link that were sent to you by go to webinar. They are also available in the handouts, pain of the go to webinar control panel. If you can’t find it, just click on View, then handouts and then you can download it.

[00:01:19.210]
If you have questions during the presentation, don’t hesitate to ask via the questions pain.

[00:01:26.580]
So the presentation that we’re doing today is kind of a kind of a Frankenstein, actually what I did is I went … Continue reading